United States
Environmental Protection
Agency
Solid Waste
and Emergency Response
(5306W)
EPA530-F-97-040
August 1997
http://www.epa.gov
&EPA
JOBS
THROUGH
RECYCLING
JTR Grantee Series
Arizona
B
;ased on the premise that the recycling industry in Arizona was in its infancy in
1994, the Arizona Recycling Economic Development Advocate (REDA) identi-
fied three important components for emerging recycling businesses to be suc-
cessful: (1) a consistent supply of recovered materials, (2) a steady demand for
recycled products, and (3) greater education of state leaders. To develop a foundation for
recycling businesses, the REDA focused on providing leadership in recoverable materials
market development and creating recycling-oriented jobs statewide. Specific REDA goals
included:
Employment: Bringing 5 recycling firms and
500 recycling jobs to Arizona each year.
Investment: Attracting new capital investment
of $25 million each year.
Capacity and utilization: Expanding the utiliza-
tion of Arizona's post-consumer recovered and
postprocess reusable materials by an average of
5 percent each year.
PROGRAM ACTIVITIES
The Arizona REDA provided assistance to local
businesses in four areas:
Publications and Promotion
The REDA first established a strategic management
plan for the program. Next, the REDA initiated a
Recycling Market Development Study early in
the grant period. The study pulled together useful
market, recycling, and waste information to bet-
ter educate the public on the current recycling
market, inform business leaders and industry of
the availability of recyclable materials and their
uses, and showcase the recycled products made by
Arizona-based manufacturers and distributors.
Key projects include the Arizona Market
Development Tool Kit, composed of three tech-
nical assistance publications for reference on the
recycling climate and opportunities in Arizona;
the Arizona Recycling Technology Assistance
Program, a training workshop geared towards
government, and business sectors; and the Arizona
Buy Recycled Exposition, which highlighted
Arizona-based manufacturers, distributors, and their
recycled products.
Grant Type: REDA
Office Awarded:
Arizona Department of
Commerce
Project Partners:
Arizona Department of
Environmental Quality
Year Awarded: 1994
Funding:
$ 74,000 in EPA funding
$ 40,000 in state funding
$114,000 in total funding
Materials Targeted:
Paper
Steel
Niche items
Contact Information:
Mr. Greg Fisher
National Marketing Division
Arizona Department of
Commerce
3800 North Central
Suite 1500
Phoenix, AZ 85012
Phone: 602 280-1395
Fax: 602 280-1338
E-Mail: gregf@ep.state.az.us
-------
JOBS THROUGH RECYCLING
Business Assistance
The REDA assisted businesses by
explaining Arizona tax incentive pro-
grams, setting up site visits for prospec-
tive companies, and coordinating with
state and local permit authorities to
expedite development processes.
Database Development
The REDA assisted in expanding the
Arizona Department of Commerce's
(DOC's) business prospect database.
This database is part of a crucial database
for DOC's entire National Marketing
Division. The REDA also developed a
recycled market and media database.
To develop sustainable
recycling market
development policies,
the REDA met with
state decision-makers
to educate them about the
recycling industry and
how it ties
into the state's economy.
Financial Assistance
A Recycling Business and Financial
Leadership Roundtable was held to pro-
mote the economic environment; more
than 30 Arizona business and financial
leaders attended. The REDA, upon
request, assisted numerous other busi-
nesses to secure financing through
referrals, letters of recommendation,
and joint meetings.
CHALLENGES OVERCOME
The REDA overcame several challenges
during the implementation of the
grant:
Lack of understanding about
recycling markets and the recycling
industry on the part of the econom-
ic development and political com-
munities. To develop sustainable
recycling market development poli-
cies, the REDA met with decision-
makers to educate them about the
recycling industry and how it ties
into the state's economy. To effective-
ly present environmental legislation
to decision-makers in Arizona, the
REDA tied the program to its
economic benefits and provided
statistics.
Volatility of the markets. When
mainstream recyclables declined in
value, the REDA refocusecl on niche
markets such as carpet pads and tires.
Difficulty in raising capital. The
REDA helped businesses overcome
this obstacle by:
Encouraging national banks with
branches in Arizona to reinvest
into the local economy. Often
banks do not lend to startup busi-
nesses, because they believe their
projects are too risky, lack collater-
al, and do not have clear markets
for their products.
Working with the. Arizona Depart-
ment of Environmental Quality
(DEQ) to assist prospective recy-
cled product manufacturers
through the grant and loan
program.
Assisting businesses in locating
additional financing through the
Business Incubator Program, Small
Business Administration, venture
capital organizations, the Finance
Division of the DOC, Kirkworks,
and the Environmental Capital
Network.
The REDA attempted to
develop additional supplies
of recydables from within
the state to help eliminate
the excess costs of trans-
portation, and thus increase
the economic benefits
of recycling in Arizona.
Lack of recyclable materials. With
Arizona's statewide recycling rate at
10 percent, there was a lack of post-
consumer recyclable supply. Working
with the DEQ to educate businesses
and residents on the importance of
recycling collection, the REDA
attempted to develop additional sup-
plies of recyclables from within the
state. If successful, these efforts will
help eliminate the excess costs of
transportation, and thus increase the
economic benefits of recycling in
Arizona.
Limitations on agencies. DEQ con-
cluded that the state benefits most with
the market developer located at
DOC with a cooperative tie to DEQ.
DOC has more flexibility to fund
market development programs than
DEQ.
-------
JTR GRANTEE SERIES: ARIZONA
LESSONS LEARNED
The REDA identified several lessons
learned and advice for new JTR
grantees:
Know your state. Spend time show-
ing prospective businesses around the
state. Knowing about state economic
development issues, geography, and
the resources available to prospective
businesses are keys to a successful
assistance program. Also, know when
and whom to contact for more infor-
mation on aspects of the field in
which prospects need assistance.
Avoid bureaucratic habits, as this will
produce limited results.
Target assistance efforts. A grantee
in a REDA position cannot provide
detailed assistance to every business
contacted. The level of assistance
provided to businesses should be
based on their willingness to help
themselves. Grantees should avoid
propping up failing businesses.
Be flexible. Learn to change the
approach when things do not work.
Even when an approach is
working, continue to
look for ways to enhance
efforts.
ACCOMPLISHMENTS
During the 1994-1995 grant period,
the REDA educated state leaders in
Arizona about the recycling industry.
Benefits noted include increased waste
diversion and an increase in in-state
usage of materials, which reduces the
transportation necessary for end-market
delivery.
The JTR grant created
672 new recycling-oriented
jobs and attracted $2OQ5
trillion in recyding business
investments.
The JTR grant created 672 new
recycling-oriented jobs and attracted
$200.5 million in recycling business in-
vestments. Arizona's recycling material
capacity expanded by approximately
758,000 tons per year, and the program
resulted in a 40 percent growth in end
use over 3 years. The accomplishments
were attributed to the use of strategic
planning, flexibility, and program evolution
when efforts were ineffective.
PROGRAM FUTURE
The U.S. Environmental Protection
Agency awarded another JTR grant to
Arizona in April 1996. The new project
is entitled "Project for a Sustainable
Arizona." The main goal of the new
grant is to create long-term job
opportunities in rural and tribal areas
of Arizona, focusing on forestry and
timber industry wastes.
The REDA continues to work with the
state of Arizona to increase its commit-
ment to recycling market development
by showing the positive economic impact
on the state. The REDA hopes to build
support in the Arizona State Legislature
by showcasing the results of the market
development study. Specifically, the
grantee is encouraging state leaders to
establish a statewide recycling goal and
a recycling-focused solid waste manage-
ment plan, as well as expanded grant
funding through tipping fees.
Business Management:
Technical Assistance:
Financial Assistance:
Full-Time Equivalents Created:
Amount of Capital Invested:
Volume of New Capacity Created:
Volume of Secondary Materials
Actually Used:
17O businesses assisted
2OO businesses assisted
22O businesses assisted
672jobs
$2O(X5 million
7 68,000 tons per year
600,000 tons per year
-------
JOBS THROUGH RECYCLING
"The RED A was very helpful to Wisconsin Tissue in
locating our Southwest operation. "
NIKE GRAVERSON AND NIKE BOGENSCHUTZ
Converting Facility General Manager and Tissue Mill Plant Manager, Wisconsin Tissue
Wisconsin Tissue, based in
Menasha, Wisconsin, has been
making paper and paper products
from recovered materials for decades. To better serve customers
on the West Coast, Wisconsin Tissue sought out new locations in the Southwest.
Assistance from the Arizona REDA, combined with tax incentives and the avail-
ability of an existing papermill facility, convinced Wisconsin Tissue to establish two
facilities in Arizona.
The REDA provided comprehensive assistance to Wisconsin Tissue from start to
finish. The REDA lined up site visits and tours of Arizona localities, helped the
company apply for an environmental technology tax credit, and assisted the com-
pany in preparing its bid for site locations. Upon Wisconsin Tissue's commitment
to Arizona, the REDA and project partner Greater Flagstaff Economic Council
assisted Wisconsin Tissue on permitting and zoning issues.
A number of direct and indirect economic and environmental benefits resulted
from Wisconsin Tissue's locating in Flagstaff, Arizona:
Wisconsin Tissue is one of the top 10 employers in the Flagstaff area. Within
the manufacturing sector, it is in the top five.
The company employs approximately 160 semiskilled and skilled full-time
employees and 15 part-time employees.
Paper waste diverted averages 40,000 tons per year.
The wages and benefits package offered is substantially higher than the local
average, adding a substantial number of quality jobs to the Flagstaff area.
The company invested more than $40 million in facilities and equipment.
Wisconsin Tissue is paying approximately $235,500 annually in local taxes.
Wisconsin Tissue is paying nearly $6 million in payroll.
The facilities spend nearly $330,000 monthly for utilities.
Annual local purchases are $1.66 million for equipment and supplies. State-
wide spending amounts to $7.8 million.
The company attracted new industrya trucking companyto the local area to
serve Wisconsin Tissue.
Publications
Arizona Recycling Market
Development Program Final
Report. Summarizes results for
the 1994-1995 JTR grant.
Arizona Recycling Market
Development Program. This mar-
keting brochure summarizes the
key economic and infrastructure
opportunities for recycling and
environmental technology com-
panies interested in establishing
operations in Arizona.
Arizona Recycling Market
Development Program Study. This
4-volume publication includes:
Summary Report, Economic
Impact of Recycling in Arizona,
Arizona Recycling Market
Prospectus, and the Arizona
Recycling Resource Directory.
Together the volumes document
recycling market opportunities
in Arizona. Including market
supply information and recom-
mendations for enhancing the
level of recycling collection in-
state, the study comprehensively
examines Arizona's recycling
market.
Fiscal Impact of Wisconsin Tissue
on Coconino County (Economic
Strategies Group, 1996). This
study assesses the primary and
secondary impacts of Wisconsin
Tissue on the local economy.
------- |